Medical Devices – Lymphedema Pumps

The Department of Justice reached a $4.9 million settlement with a New Jersey medical devices manufacturer, Huntleigh Healthcare, based on a qui tam case brought by Getnick & Getnick LLP alleging fraudulent marketing of lymphedema pumps. The qui tam suit alleged that Huntleigh was selling lymphedema pumps to medical equipment dealers for less than $500, and falsely claiming that it had design features making it eligible for reimbursement by Medicare as a top-of-the-range, $4,000 pump, when in fact, the pump was the same as a low grade pump also manufactured by Huntleigh and eligible for only about $475 reimbursement.  A Texas dealer, Breathco, Inc. aka Jalopy Shoppe, Inc., also agreed to a settlement of $1.4 million. Getnick & Getnick’s client, a Florida medical equipment dealer who had alerted Medicaid to Huntleigh’s fraudulent marketing, was awarded 18% of the recovery.